Business Lines Liability FAQ:
- What is a third party claim?
A third party claim is a claim brought against you by someone other than an insured.
- Does my General Liability Policy provide coverage if my company is sued for pollution?
This insurance does not apply to bodily injury, property damage, advertising injury or personal injury arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollution.
- Does my General Liability Policy provide Liquor Liability Coverage?
Yes, your General Liability policy provides liquor liability coverage unless you are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages. These types of businesses need to purchase additional coverage specific to liquor liability coverage.
- What is Fire Legal Liability coverage?
Fire Legal Liability provides coverage against liability for fire damage to premises rented to the named insured or temporarily occupied by the named insured with the owner’s permission. Most Commercial General Liability policies provide a separate limit of $50,000 to cover this exposure.
- Will my liability insurance cover me if I am sued in another country?
Most liability policies provide coverage for lawsuits only if they are brought in the United States, its territories and Canada.
- What is the difference between Employee Benefits Liability Coverage and a Fiduciary Bond?
The Employee Benefits Liability policy was designed primarily for a variety of benefit plans to provide coverage for administrative errors and omissions. The Fiduciary Bond policy was designed to cover a fiduciary’s ERISA (Employee Retirement Income Security Act) exposures that are caused by a “wrongful act.” Fiduciary coverage responds to claims for damages arising out of improper investments as well as plan and employee advice.
- What is an Umbrella Policy?
An umbrella policy provides additional limits of insurance over and above underlying coverages found on a General Liability, Automobile or Workers’ Compensation policy. If there is a claim, the underlying policy will pay its limits of liability and the umbrella policy coverage would then be activated
- When do I need to purchase Workers' Compensation Insurance?
Most states require an employer to purchase Workers’ Compensation Insurance as soon as they have employees. These states also consider a corporate entity to have employees from the moment the corporation is formed.
Workers’ Compensation Insurance will provide medical expense and disability income for injured employees as required by the laws of each state. In addition, the insurer will defend any claim proceeding or suit against the insured for benefits payable under the policy.
Premium shall be computed on the basis of the total remuneration (payroll) paid or payable by the insured for services covered by the policy.
- What should be included in the remuneration?
In addition to ordinary wages or salaries, remuneration includes several other types of compensation. These include:
- Bonuses
- Extra pay for overtime work except as provided in Rule V-E
- Pay for holidays, vacations or periods of sickness
- Payment by an employer of amounts otherwise required by law to be paid by employees to statutory insurance or pension plans
- Payment to employees on any basis other than time worked, such as piece work, profit sharing or incentive plans
- Payment or allowance for hand tools or power tools used by hand and provided by employees and used in their work operations for the insured
- The rental value of an apartment or house provided for an employee based on comparable accommodations
- The value of lodging received by employees as part of their pay
- The value of meals received by employees as part of their pay to the extent shown in the insured’s records
- The value of store certificates, merchandise, credits or any other substitute for money received by employees as part of their pay
Items not included are:
- Tips and other gratuities received by employees
- Payments by an employer to group insurance or group pension plans for employees other than payment covered by Rule V-B.2e
- The value of special rewards for individual invention or discovery
- Dismissal or severance payments except for the time worked or accrued vacations
